Hikma enters Egyptian market
Hikma Pharmaceuticals Plc
09 August 2007
Hikma acquires Egyptian pharmaceutical company
LONDON, 9 August 2007 - Hikma Pharmaceuticals PLC ('Hikma')(LSE: HIK)(DIFX:
HIK), the multinational pharmaceuticals group, announces that it has agreed to
acquire the entire issued share capital of Alkan Pharma ('Alkan')(the
'Company'), an Egyptian pharmaceuticals company, for a cash consideration of
$60.5 million (EGP 342 million). The acquisition is scheduled to complete in
the second half of 2007, subject to meeting certain regulatory requirements. The
acquisition will be funded entirely by debt.
Alkan develops, manufactures and markets generic pharmaceuticals in both solid
and liquid form for the Egyptian market. Alkan has 175 registered
pharmaceutical products, including nearly 60 products under license from leading
multinational pharmaceutical companies. In addition, the Company has 140
products pending registration. Alkan's product portfolio spans a number of
therapeutic categories, including Alimentary and Metabolic, Musculoskeletal and
Infectious Disease.
Alkan's substantial sales and marketing infrastructure, which includes more than
200 sales and marketing staff, operates across Egypt and has excellent
relationships with distributors, doctors and pharmacists. The Company's
manufacturing facilities operate at a very high standard and are routinely
audited by local Egyptian health authorities as well as by its multinational
licensing partners.
Alkan has grown sales by 18% and 34% in the past two years, respectively, with
net sales in 2006 of $14.6 million (2005: $10.9 million) and profit before tax
in 2006 of $3.5 million (2005: $1.5 million).
Said Darwazah, CEO of Hikma commented:
'Alkan's local manufacturing capabilities, strong product portfolio and
registration pipeline, together with its significant sales force, provides Hikma
with an excellent platform from which to access the large and growing Egyptian
market. Alkan offers a strong commercial and distribution platform from which
to introduce Hikma's branded generics into the Egyptian market and adds a broad
product portfolio and pipeline that can be leveraged into Hikma's existing
markets. Alkan has a strong management team and we look forward to working with
them to build Hikma's presence in the Egyptian market.'
- ENDS -
Enquiries:
Hikma Pharmaceuticals PLC
Susan Ringdal, Investor Relations Director +44 20 7399 2760
Brunswick Group
Jon Coles / Justine McIlroy / Alex Tweed +44 20 7404 5959
About Hikma
Hikma Pharmaceuticals PLC is a fast growing multinational group focused on
developing, manufacturing and marketing a broad range of both branded and
non-branded generic and in-licensed products. Hikma's operates through three
businesses: 'Branded', 'Injectables' and 'Generics', based principally in the
Middle East and North Africa ('MENA'), where it is a market leader and sells
across 18 countries, the United States and Europe. In 2006, Hikma achieved
revenues of $317 million (2005 $262 million) and profit attributable to
shareholders was $55 million (2005 $44 million). At 31 December 2006, the Group
had over 2,400 employees. For news and other information, please visit
www.hikma.com.
The Egyptian pharmaceutical market
The Egyptian pharmaceutical market was worth approximately $2.2 billion in 2005,
making it the second largest regional pharmaceutical market after Turkey.
Healthcare expenditure amounted to 3.6% of GDP, of which 1.1% was attributable
to pharmaceutical spending. In the five-year period ending in 2005, the
Egyptian pharmaceutical market grew at a compound annual growth rate of
approximately 5%. The market is expected to continue to grow, given the
favourable economic environment, its large and growing population, increased
health awareness and an expanding public health insurance coverage.
This information is provided by RNS
The company news service from the London Stock Exchange
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